MBH Adds Further Growth With Acquisition of 4X Limited Taxis – Expanding Its Transport Vertical

MBH Corporation plc (MBH), a diversified investment holding company, is making its third acquisition of 2021, with Cambridgeshire based 4X taxis joining the burgeoning MBH portfolio as its 25th company.

MBH Corporation plc is adding further depth to its transportation vertical with the acquisition of 4X.  4X will reside under Take Me [Formerly ADT Taxis] as a tactical acquisition following MBH acquiring Take Me in 2020.

4X is a long established company with an extensive fleet operating in and around Cambridgeshire. The 4X taxi fleet now numbers over 100 vehicles and has broad ranging contracts with local schools, hospitals, prisons and local businesses. As the nationwide lockdown and its accompanying reduction in freedom of movement has had an inevitable and significant impact on taxi and private hire companies, these contracts have been invaluable as a steady revenue stream to 4X.

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Despite the pandemic’s impact, 4X’s 31 July 2020 unaudited revenue was £1.8m with an EBIT of £0.2m.  With its significant fleet size and plans to make efficient and innovative use of technology to offer similar levels of service to ride hailing firms, 4X is well set to capitalise as the nation starts to emerge from lockdown.

4X is also making an important commitment to the environment by taking a proactive approach to replace any cars [that are currently being rented] from petrol/diesel to energy-efficient electric models.  They are also offering driver incentives for switching to EV cars.

The total consideration for the acquisition of 4X is approximately GBP 1.0m to GBP 1.4m which will be settled by way of a listed bond in accordance with the MBH bond programme with the following terms:

• 5-year maturity with principal payable at maturity; and
• 5% coupon rate per annum payable semi-annually

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Bond Programme and Number of Shares on Issue

After this acquisition, MBH would have utilised approximately EUR33m of its bond programme leaving a balance of EUR17m to be utilised if required.

The number of shares issued as at the date of this release is 71.3m.

Steve Woodham, Managing director 4X, said:  “This is a pivotal moment for 4X as the team looks to evolve and grow under new leadership from Take Me  to meet new challenges after an extremely testing year.  It’s enormously exciting to be joining the MBH family and I know how much David Hunter and his team at Take Me  have already benefited from the experience and counsel of other principals within the portfolio.  I look forward to watching 4X go from strength to strength as it moves forward in a changed landscape.”

Callum Laing, CEO MBH Corporation plc, commented: “We’re delighted to expand our transportation vertical and welcome 4X onboard.  We have been hugely impressed with their proactive solutions to the challenges presented over the past 12 months, plus their commitment to EV and environmental concerns. We look forward to watching them grow as part of the MBH Group.”

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